Calculating cost of goods sold


Question: Acme Company projects sales of $230,000 in May, $255,000 in June, $270,000 in July, & $240,000 in August. The U.S. dollar value of the firm’s cost of goods sold is 65% of total sales. The U.S. dollar value of its desired ending inventory is 25 percent of the following month’s cost of goods sold.

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Finance Basics: Calculating cost of goods sold
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